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How to Use Automotive Keys Properly There are many different types of automotive keys. Some include transponder chips in their heads, while others are flat and work mechanically by utilizing grooves on their tops and bottoms. The first car key technology was simple to duplicate, but later, manufacturers introduced a chip that stored a unique "password" for your car. This adds an extra layer of protection against theft. Transponder key A transponder or chip key is a specific key for cars that